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7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[
SCM EWM: Applying Extended
Warehouse Management to theWholesale Distribution Industry
Gavin Klaus, LogiStar Solutions LLC
7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[ Agenda
Introduction EWM Update
EWM for Wholesale
Applying Best Practices with your organization
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[ LogiStar Services
3
Expertise
• SAP Supply ChainExecution is our solefocus
• Average experience10+ years with SAP
Certifications
• SAP ServicesPartner
• SAP SpecialExpertise Partner
• Pre-Release Test
Partner• SAP EEP Reseller
• Certified EWM RDSPartner
Solution Focus
• SAP SCM EWM
• SAP LES WM
IndustryExpertise
• Medical Devices
• Pharmaceuticals
• Food & Beverage
• Service Parts
• WholesaleDistribution
• Automotive
• Retail
7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[
SAPWAREHOUSE MANAGEMENT
SAP Supply Chain Execution Solutions
RF & Barcoding
Voice Picking
Small Parcel Shipping
Transportation
Management
SAP SCE Strategy
SAP Logistics Solution
Architecture
Labor Management
Warehouse and Labor
Analytics
7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[ Key Learnings
The Wholesale Distribution industry has some of the mostadvance distribution operations and processes. Learn
how SAP EWM facilitates best practices in the Wholesale
Industry
Learn how many of these best practices are cross-
industry and the key features that can lead to key
performance gains within your operation.
7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[ SCM EWM Update
SCM EWM offers significant functionality above andbeyond ERP WM offering functional parity with Best of
Breed WMS solutions including:
Labor Management
Slotting
Material Flow Systems
RF Wizard
Quality Inspection Engine
Resource Management
Cross-Docking
Value Added Services and Kitting
Yard Management
7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[ SCM EWM Update
The SAP EWM solution was introduced to compete withbest of breed solutions. Now on its fourth release, EWM is
gaining traction in the market, offers the features and
functions you would expect in a robust solution, and offers
distinctive value propositions not offered by other leading
suppliers.
So is SAP EWM a rival to best of breeds? Yes they are.
Source: ARC Advisory Group, “ SAP EWM: A Rival to
Best of Breed Solutions? “, October 2010
7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[ SCM EWM Update
EWM has been implemented globally in a wide variety ofindustries:
Third Party Logistics
Wholesale Distribution
Food and Beverage
Automotive
Retail
Life Sciences
Industrial Manufacturing
Aerospace
8
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[ Wholesale Distribution Requirements
Multiple vendors Multiple customers
High number of SKU’s
High service level
Small orders Parcel shipping
Low eaches per line
Short order cycle time and late cut offs
Multiple Transportation methods, will call, customer pay,company pay, parcel, LTL, Courier, Milk run, own fleet
Value added services
Order flexibility9
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[ Wholesale Distribution Industries
Retail/CPG (Food, Beverage/Spirits, Sundries) Hi Tech (Consumer and B2B)
Pharmaceutical/Medical Supply
Automotive
Building and Industrial Supply
10
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[ Batch Picking
In batch picking, groups of orders are picked at the sametime to minimize repeat visits to the same product bin
location. The WMS can arrange a group of orders in the
most efficient picking sequence.
Relevant for operations with:
Multiple each or overpack items to a shipping case or tote
Multiple cases or large eaches to a pallet
Industry relevance – All
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[ Batch Picking
Warehouse Task (WT)
Task creation functionality is embedded in SAP EWM
In addition to picking execution, WT is used for actual or logical
goods movement such as packing, staging and loading
The warehouse task contains the following information;
The product to be moved Quantity
Source and Destination location information
A WT can be a Product WT (material, quantity) or HU WT
(containing HU).
12
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[ Batch Picking
Warehouse Order (WO)
SAP TRM functionality is inherited in SAP EWM that allows
Logical grouping of WTs into warehouse order for efficient
processing – a work package
It is at the warehouse order level that resources are assigned to
execute the work.
13
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[ Deconsolidation
Deconsolidation is the process of dividing a mixed receipt
into putaway zones or groups based on your facility
layout. (aka fanning, zoning)
Typically leveraged for operations with high volumes of
parcel receipts, mixed containers, and mixed pallets
Reduces travel time by grouping putaway tasks
SCM EWM provides a system directed solution to allow
for confirmation of each process via RF or GUI
Industry relevance – Retail, CPG, AMP, Manufacturing
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[ Deconsolidation
Deconsolidation
Deconsolidation provides ability to regroup contents of an
HU and putaway separately
EWM utilizes consolidation groups to determine if
products can be putaway together
Deconsolidation is relevant if:
The Activity Areas of the products within an HU are different
The Activity Areas of the products within and HU are the
same but the consolidation groups are different
The AA and consolidation groups are the same but the
maximum number of warehouse tasks for the HU has been
exceeded
15
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[ Deconsolidation
All tasks are managedwithin EWM and can
be executed on GUI or
RF
In addition toDeconsolidation,
Process Oriented
Storage Control allows
for system directed
work, supporting
multiple processes
16
Source: SAP Extended Warehouse Management: Processes, Functionality, and Configuration by SAP Press
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[ Wave Planning
The process of grouping multiple orders to be picked at one
time
In a WMS, you can create order waves to see how much labor
you'll need to allocate and how much time it will take to
complete each wave. As the wave works its way through the
DC, you'll be better able to allocate how many downstreamoperators you'll need once the picking process is completed.
Key objectives
Grouping of orders to control the flow of work to the warehouse
floor
Ability to control the volume or work effort to create manageable
units of work
Allow for a well orchestrated replenishment process
Industry Relevance – All, Retail, CPG, AMP
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[ Wave Management
18
Wave Management
Outbound Delivery Order (ODO) items can be independently
assigned to wave
ERP WM requires entire delivery to be assigned to a wave
Items grouped based on a common attribute
Picking Area,
Method of Picking Product Attributes
From SAP Extended Warehouse Management:
Processes, Functionality, and Configuration by SAP
Press
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[ Wave Management
19
Wave Template
Wave Templates are used to manage the automatic assignment of
warehouse request items to waves
Waves can be managed through the Wave Monitor
Manual Release
Assignment or un-assignment of request items
Block/Unblock Split/Merge/Delete
7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry
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[ Labor Management
Labor Management Basics
Better scheduling and planning Reduction of hours (OT, VTO, staffing levels, temp)
The Management Team can leverage the tool to drive hours out of thefacility
Increased utilization of the workforce
Employees respond to the Management Team’s expectations Management is given visibility into the distribution operation at the
task level
Employees are measured against the SOP
Associate pace and skill improvement (setting the rightexpectation)
Improved processes (reduced steps)
Shortened learning curve for new associates
Industry Relevance – Any operation can leverage an LMS withreasonable expectancies. Due to the effort to develop ELS, typicallya 25 person operation will justify
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[ Labor Management
Labor Management program savings are significant
Quality of Supervision
--30%30%--40%40%--60%60%
Norms (no LaborNorms (no Labor MngMng..
System)System)
GoodAveragePoor Level of Measurement
+25%+25%+10%+10%--10%10%LMS w/ ELS and IncentivesLMS w/ ELS and Incentives
+5%+5%--5%5%--15%15%LMS w/ Engineered StandardsLMS w/ Engineered Standards
--10%10%--20%20%--30%30%LMS w/ ReasonableLMS w/ Reasonable
ExpectanciesExpectancies
--20%20%--30%30%--40%40%LMS w/ Historical RatesLMS w/ Historical Rates
Quality of Supervision
--30%30%--40%40%--60%60%
Norms (no LaborNorms (no Labor MngMng..
System)System)
GoodAveragePoor Level of Measurement
+25%+25%+10%+10%--10%10%LMS w/ ELS and IncentivesLMS w/ ELS and Incentives
+5%+5%--5%5%--15%15%LMS w/ Engineered StandardsLMS w/ Engineered Standards
--10%10%--20%20%--30%30%LMS w/ ReasonableLMS w/ Reasonable
ExpectanciesExpectancies
--20%20%--30%30%--40%40%LMS w/ Historical RatesLMS w/ Historical Rates
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[ Stock Specific Unit of Measure
Ability to manage multiple Stocking
UoM for the same SKU (a 6 packand an 8 pack)
Inbound Process
Apply alternative UoM from ERP
delivery
Propose preferred UoM
Change of UoM at different steps
Putaway strategy via UoM/quantity
classifier
Internal Process
Physical Inventory
Monitoring
Outbound Process
Small/Large quantity picking (w/o
packaging specification)
Send UoM information to ERP
22
Pallet
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[
23
Key Learnings
SCM EWM is a robust WMS solution offering full
capabilities known to be in a state of the art WMS
SCM EWM is credited for being able to accommodate
some of the most complex requirements of a wholesale
distribution operation and many of these can be applied
across many industries
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